Are you Working with a Salesman or Consultant?

What is the difference between a salesman and consultant and how do you know who you are working with?

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The Home is in contract. Now we can just wait until closing, right!?

Every Home Purchase Contract, when buying or selling, have time-sensitive deadlines. Not meeting these deadlines can leave a home buyer or seller in default or looking for a new buyer or seller. There really is more to the process than just coming to an agreement on price, repairs, and closing date.

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Successful Real Estate Negotiation Tips

Successful Real Estate Negotiations takes time and practice. The last 8 years in Real Estate have taught me 4 top principles to utilize during every negotiation.

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18 Important Points of Negotiation of a Home Purchase Offer in Texas

18 important points of negotiation when making or receiving an offer on a Single-Family Home in Texas

Negotiating an offer to purchase or sell a home is much more complex than most consumers recognize. Below I have listed 18 opportunities for negotiation on the Standard TREC 1 to 4 Family Residential Resale Contract. Not fully understanding each point of negotiation and how they affect the overall closing of the transaction could cost you Time, Money or the Sale or Purchase of your home altogether

                                                                                                                                                                                  

1.       Improvements (Line - 2 D. of Contract) – Are there items such as TV mounts, antique lighting fixtures, specialty doors or any other fixture that the seller intends to take with them when they move? Will the seller replace the removed items with new acceptable items before they move?

2.       Mineral Rights (Line - 2 E. of Contract) – Does the seller still own the mineral rights to the property? Will the mineral rights convey to the new buyer or stay with the seller? (Addendum would be required if the seller wishes to maintain mineral rights)

3.       Sales Price (Line - 3 of Contract) – What is the total purchase price? How much down payment will the buyer provide? How much in financing will the buyer require? (Addendum would be required if the buyer is using financing)

4.       Earnest Money Deposited (Line 5 of Contract) – How much earnest money will the buyer deposit with the title company?

5.       Title Company Used (Line 5 of Contract) – What title company will be used to close the transaction?

6.       Title Policy (Line 6 A. of Contract) – What title company will provide the title policy? What type of tile policies will be provided? Who will pay for the title policies “Buyer or Seller”?

7.       Survey (Line 6 C. of Contract) – Can an existing survey be used to close this transaction? If not, who will pay for the new survey?

8.       Title Objections (Line 6 D. of Contract) – How many days will the buyer have to review the title disclosure? What prohibited use or activities will be included as possible objections?

9.       HOA Documentation (Line 6 E. 2 of Contract) – Is the home being sold subject to mandatory membership in an HOA? If so, will the HOA addendum be used as part of this contract?

10.     Sellers Disclosure (Line 7 B. of Contract) – Is a seller’s disclosure required? If so when will the seller's disclosure be provided to the buyer?

11.   Upfront Repairs (Line 7 D. of Contract) – Is buyer requesting upfront repairs or treatments even before the inspection is complete?

12.   Home Warranty (Line 7 H. of Contract) – Will the seller contribute funds to purchase buyer home warranty?

13.   Closing Date (Line 9 A. of Contract) – What date will buyer and seller close on the home?

14.   Buyer Take Possession (Line 10 A. of Contract) – When will the buyer take possession of the home? If buyer or seller need a temporary lease an (Addendum would be required)

15.   Special Provisions (Line 11 of Contract) – Is there a detail that needs to be added in Special Provisions, applicable to the specific offer at hand, that TREC has not promulgated a form, lease or addendum for?

16.   Seller Paid Closing Cost (Line 12 A. of Contract) – Will the seller contribute funds on behalf of the buyer to help pay for the buyer's cost of closing on the home?

17.   Addenda to Contract (Line 22 of Contract) – What Addenda are being used with this specific transaction? Many Addenda are required by law or being used as best practice for the buyer or seller.

18.   Option Period (Line 23 of Contract) – Will the buyer have an unrestricted right to terminate the contract? (Typically used to have the home inspected) If so, how long will the option period last? How much will the buyer pay the seller for the option period? 
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Mortgage Rates still on the rise

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Everyone Wants to Avoid Wasting Time

“If you waste my time, don’t expect me to hang out with you very long.” This could have been said by a buyer or seller or a real estate agent. Time is valuable and no one wants to waste their time.
Most people can’t put their lives on-hold while they’re trying to buy or sell a home. Whether they have a family, a couple or single, life continues and the time constraints of moving can become burdensome.
Your agent is committed to helping you save time while making the experience memorable. They know the process and the potential problem areas and can help you move through them.
To preserve your time and your agent’s, please consider the following:

• If your plans to buy or sell change, let your agent know.
• Be on time for appointments or if it is necessary, cancel them with as much notice as possible.
• Get pre-approved through a trusted mortgage professional.
• Cooperate with your loan professional by providing all requested documentation.
• Don’t wander into builder or REALTOR® open houses without your agent. If you find yourself in that situation, immediately notify them that you have an agent.
• Only talk to the other party through your agent until after closing.

Your agent is working to help you meet your goals. Things work best when it’s like a partnership where each party mutually respects the other and their resources including their time.

Building a lifestyle together! 

Respectfully, 

Bret Wilson - (214) 315-9465

Real Estate Blog www.realestatewithbret.blogspot.com

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Retirement Funds for Home Purchase

Retirement Funds for Home Purchase

For the person who has good credit and income but not enough money for the down payment on a home, their qualified retirement program could offer them some help. The rules are different depending on whether it is a 401(k), a Roth IRA or a traditional IRA.

Up to half of the balance of a 401(k) or $50,000, whichever is less, can be borrowed by the owner at any age for any reason without tax or penalty assuming the employer permits it. There can be specific rules for loans from 401ks that would determine the repayment; interest is usually charged but goes back into the owner’s account. You can consult with your HR department to find out the specifics.

A risk in borrowing against a 401(k) comes if your employment ends before the loan has been repaid. The loan may have to be repaid with as soon as 60 days to keep the loan from being considered a withdrawal and subject to tax and penalty. Even if you continue with the same employer, failure to repay the loan could be considered a withdrawal also.

Roth IRA owners can withdraw their contributions tax-free and penalty-free at any age for any reason because the contributions were made with post-tax income. After age 59 ½, earnings may be withdrawn as long as the Roth IRA have been in existence for at least five years.

Traditional IRAs have a provision for first-time buyers which include anyone who hasn’t owned a home in the previous two years. A person and their spouse, if married, can each withdrawn up to $10,000 from their traditional IRA for a first-time home purchase without incurring the 10% early-withdrawal penalty. However, they will have to recognize the withdrawal as income in that tax year. For more information, go toIRS.gov.

Another interesting fact about this provision is that the taxpayer making the withdrawal can help a relative includes children, grandchildren, parents and grandparents.

If you want more information to clearly understand the issues involved relative to your specific situation, talk to your tax professional or consultwww.IRS.gov.

Bret

Wilson

Keller Williams

Flower Mound TX

(214) 315-9465

bret.wilson@kw.com

Open House Sunday Aug 2 from 3 to 5 p.m. in Lantana

Make Your Offer Standout

If a seller was looking at two offers for exactly the same price on their home, there would still be things that could make one standout more than the other. If there happens to be more than two offers, things can really get sticky for a buyer. For that reason, it is good to craft the most attractive offer possible because even if you don’t have competition now, another offer could come in during negotiations and derail all your efforts to that point.

Anything that can give the seller the peace of mind that one contract will close on time and as agreed will make them more comfortable in accepting one offer over another. Buyers can consider putting up larger than customary amounts of earnest money and limiting the contingencies to only the most essential items.

The closing costs could be more expensive to the seller based on the type of mortgage a buyer is obtaining. One buyer may be asking the seller to pay part or all of their acquisition costs and the other buyer is paying their own costs.

The borrower who has a signed, preapproval letter will appear to have a greater certainty to closing than a buyer who only says they have talked to a loan officer. Some lenders' letters are considered “gold” and others may not be worth the paper they’re written on. The seller will depend on their listing agent to advise them.

In most cases, the seller will be taking all or part of the cash they receive from the sale of their home and buying another one. If they have to put a contingency clause in the contract based on their current home selling, it weakens their position. Conversely, it will strengthen a buyer’s position if they don’t have to make their offer contingent upon selling their current home.

Even shortening the inspection periods and offering to close early or possible lease the home back to the seller for a short time can be valuable negotiating factors.

Finally, don’t overlook the value of a personal hand-written letter that tells the seller why you want their home. An emotional connection has been known to make a difference for one set of buyers getting the home.

Who would want to be without one?

When the 75 year old man who had been widowed four times was asked why he was getting married again, he said “for the little bit that they eat, I wouldn’t want to be without one.”

In a torrential rainfall, you wouldn’t want to be without an umbrella. It is also understandable that when purchasing or selling a home, more and more people want an agent involved.

NAR’s Homebuyers and Sellers Profile states the trend in owners trying to sell their home themselves has declined over the past ten years from 14% in 2003 to only 9% in 2014. Similarly, the number of buyers purchasing directly through an owner has decreased from 2001 to 2014 from 15% to 5%.

It is natural to think that a seller wants to get the highest price for their property while the buyer wants to pay the least possible. Negotiations may be the most valuable service provided by an agent because of the clear conflicts of interest such as the price, terms and condition.

Other areas of contention that could affect a party without an agent:

•The real estate agent who represents the other party
•The attorney who represents only one party
•Home and pest inspectors regarding condition
• The buyer’s lender regarding terms
• The lender’s appraiser regarding value
• The title company in an effort to satisfy challenges to clear title
• Municipal authorities to mitigate code violations

Even when there are two licensed agents involved, there could be a question of representation. This is a discussion that buyers should have with a real estate professional before looking at houses.